IMA might replace Banca Generali among Italy's blue chips in December - traders

GreenFirst Forest Products

27/11/2020 15:54

MILAN, Nov 27 (Reuters) - Italian automatic packaging
machine maker IMA  IMAI.MI  is expected to replace Banca
Generali  BGN.MI  in Milan's blue-chip index  .FTMIB  after a
quarterly review scheduled for Dec. 2, two traders said on
Friday.
    The changes to the index, which are based on a number of
factors including market capitalisation and free float, will be
effective from Dec. 21. 
    Inclusion in the index usually boosts a company's
visibility, given the FTSE MIB is seen as a point of reference
for the performance of Milan's bourse. 
    IMA has a market capitalisation of 2.9 billion euros ($3.46
billion) compared with Banca Generali's 3.25 billion euros, but
the company has seen a big jump in volumes in recent weeks after
Sofima, IMA's top investor, bought further shares in the company
following an investment in the holding itself by BC Partners.
    IMA's inclusion in the blue-chip index will likely prove
temporary as the company is due to be de-listed in coming months
following a mandatory tender offer by Sofima through IMA BidCo 
which is expected to kick off in December.
    "If Banca Generali leaves the index, it would be the first
in the reserve list so it would likely be re-added to the index
if and when IMA is de-listed following the mandatory tender
offer," one of the brokers said.
    FTSE Russell, the company managing the quarterly review of
the index, declined to comment. 
($1 = 0.8375 euros)

 (Reporting by Giancarlo Navach, edting by Agnieszka Flak)